According to a regulatory filing by Ola Electric Mobility Limited, Ola Electric Technologies Private Ltd has been approved for an incentive payment of ₹73.74 crore under the Production Linked Incentive (PLI) Scheme for Automobile and Auto Components for FY24. It is perhaps the first manufacturer of two-wheelers to achieve this.
The payment is specifically for sales that were made in the 2023–2024 fiscal year.
One of India’s most important governmental initiatives to promote domestic manufacturing is the Production Linked Incentive (PLI) program. The program, which was first announced in 2020 for the manufacturing of electronics, was later extended to encompass 13 important industries, including autos and auto parts.
The PLI scheme’s basic idea is straightforward but efficient: give businesses financial incentives for increasing sales of domestically produced goods. These incentives are paid out over a five-year period and usually vary by sector, ranging from 4% to 6% of incremental sales.
In September 2021, PLI-Auto, a PLI plan tailored to the automobile industry, was authorized with a ₹25,938 crore budgetary commitment. The program mainly targets two groups: Component Champions, which include non-automotive businesses venturing into the automotive industry and manufacturers of automotive components, and Champion Original Equipment Manufacturers (OEMs), which are concentrated on producing cutting-edge automotive technology vehicles and their components.
The program provides significant incentives to electric car manufacturers such as Ola Electric based on their Determined Sales Value, which is determined by taking into account variables including component localization, battery capacity, and range. To be eligible for the incentives, businesses must surpass a set investment and revenue threshold.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!